the prm qualification information evening. the professional risk manager (prm) certification nawal...

The PRM™ Qualification Information Evening

The Professional Risk Manager (PRM) Certification

Nawal Roy

Founding director of PRMIA, Member of the PRM Education Committee and New York Steering

Committee

PRMIA – The Global Organisation

The Professional Risk Managers’ International Association (PRMIA) represents over 52,000 risk management professionals

Members represent • Over 4,000 organizations

• Over 180 countries More than 60 local chapters offer 200 open meetings

annually PRMIA is a member-led, grass-roots organization Code of Ethics for Risk Professionals Governance – owned by members

PRMIA London – The Risk Association for the City

Over 11,500 members in the London chapter

• All segments of FS industry – Commercial & Investment Banking, Insurance, Fund Management, etc.

• Practitioners, consultants, academics and regulators.

Run by industry professionals on pro bono basis

• Heads of credit, market and operational risk from leading firms.

• Representatives from vendors and consultancies

Regular seminar program – 15 events in 2007

• Speakers included CROs, top regulators and academics

• Frequent industry conference speakers without the big fees!

Training program launched to complement existing seminar series.

The PRM Qualification

Aim To provide a common educational baseline for all Professional

Risk Managers in the Financial Services Industry.What Statement of best practice “Everything you wanted to know about Risk but were afraid to

ask” Foundations of Finance Theory and Financial Markets Basic mathematical tools Practical elements of credit, market and operational risk Case studies The essential concepts needed to communicate across the

organization with other practitionersWhy Objective proof of capabilities

For whom is the PRM intended?

People who want to learn People who want to advance their careers

• Provides the essential knowledge to progress from Risk Analyst to Risk Manager

• Transferable across risk disciplines Cross-Over Credits

• Exam I: (Finance Theory, Financial Instruments and Markets)o Canadian Securities Institute Financial Risk Management Graduateso Chartered Alternative Investment Analyst Financial Risk Management Graduates

• Exam II: (Mathematical Foundations of Risk Management)o Actuarial Associates

• Exams I & II: o Certified Financial Analysts (CFA) Charter Holders o Chartered International Investment Analysts o Certificate for Financial Advisors (CeFA) Charter Holderso Certificate in Quantitative Finance (CQF) Holderso Actuarial Fellows

How Much Work is Involved?

Four parts to the qualification (taken in any order)• Finance 1½ hr exam• Mathematics 2 hr exam• Risk Management 1½ hr exam• Case Studies 1 hr exam

120 total questions (20 questions an hour) Handbook has 46 chapters One chapter per week Can be completed in a year with commitment Up to two years allowed to pass all parts Gap of 4 months if an exam is failed

The Professional Risk Managers’ Handbook

• Over 40 Leading Authors

• In Use in over 105 Countries

• At 23 of 25 World’s Largest Banks

• And all 10 of World’s Largest Financial Service Companies

• The best reference source for financial risk managers

• Available online and in hardcopy

How do I take the exams?

All exams are taken via Computer-Based Testing

Nearly 4,000 Pearson test centers in over 140 countries

Any working day of the year Minimal delay User-friendly registration system – customer

focused Total flexibility

PRM Academic Partners

"A leading group of academics in renowned universities across the world have joined forces with PRMIA to organize and deliver essential training for those wishing to achieve professional qualifications. We have played an active role in the development of the PRM examination syllabus and we fully support this qualification.“Prof. Carol Alexander, Chair of the Risk Management Department and Head of Research, ICMA Centre, University of Reading

"When a professional industry organization gets the leading universities from 6 countries to join in an educational partnership, you are witnessing an event of galactic proportions. PRMIA has, in this fashion, defined the new paradigm for professional education and risk management practices for the 21st century.”

Prof. Luis Seco, Director of the Risk Lab at the University of Toronto

Columbia University Business School, Hong Kong University of Science and Technology Masters of Science in Investment Management, Macquarie University Applied Finance Center, National University of Singapore Centre for Financial Engineering, Technical University of Munich – HVB Institute for Mathematical Finance, University of Michigan College of Engineering, and a consortium of faculty in Paris representing ESCP-EAP, HEC, Ecole Polytechnique, Sorbonne and Université Paris Dauphine

"PRMIA is the international leader in risk management certification and CSI wholeheartedly endorses its PRM designation."

Roberta Wilton, Ph.D, President & CEO, Canadian Securities Institute, Toronto, Canada

“Professional development and certification within our industry is an imperative. Endorsing the PRMIA certification ensures we continue to set industry leading standards for our staff, which directly benefit our clients.”Dr. Ron Dembo, Founder of Algorithmics

PRM Professional Endorsements

“The PRM qualification is one of the best things that PRMIA has done for the risk profession.”David French, Bank of America, London

Ernst & YoungInteDelta

IRISLombard Risk

MB Risk ManagementMisys

Moody’s KMVSunGard

SYSTEMICVivisimo

10 Reasons to Choose PRM

1. Global - Offered in over 140 countries

2. Flexible - PRM exams can be taken any business day of the year and in any order you wish

3. Comprehensive - Because the PRM is broken into four exams you cannot use strength in one area to cover weaknesses in other areas

4. Affordable - Not all economies are alike, so those who earn less than US$25,000 per annum are eligible to apply for the PRM scholarship.

5. The PRM Handbook - The PRM Handbook is available anywhere in the world that has access to the Internet

10 Reasons to Choose PRM continued.....

6. Endorsements - Many companies have put their brand names on the line by publicly endorsing the PRM exam

7. Recognition of Other Achievements - We provide partial credit to those that have demonstrated their skills through attaining designations like the CFA, FSA, ASA and others

8. No Maintenance Fees - Just because you are successful doesn't mean that PRMIA should earn an annuity. You won't need to pay us anything to keep your designation active

9. Quality - Because the PRM is delivered via computer, in controlled testing facilities, we are able to monitor questions so that they truly reflect our syllabus and desired degree of difficulty

10.Respect - The PRM is the most challenging certification program for financial risk managers

Steve Block

PRM Faculty

Outline

1. The PRM Exams

2. The 7city/ICMA Centre Faculty

3. Evening Course

4. Bootcamps

5. Distance Learning

6. How to Enroll

PRM Part I: Finance

Weighting

IA: Finance Theory 35%

IB: Financial Instruments 35%

IC: Financial Markets 30%

Exam

Duration: 2 hours

Number of Questions: 36

PRM Part II: Mathematics

Weighting

IIA: Foundations 5%

IIB: Statistics 10%

IIC: Calculus 20%

IID: Linear Algebra 20%

IIE: Probability 25%

IIF: Regression 10%

IIG: Numerical Methods 10%

Exam

Duration: 2 hours

Number of Questions: 24

PRM Part III: Risk

Weighting

IIIA: Market Risk 33%

IIIB: Credit Risk 50%

IIIC: Operational Risk 17%

Exam

Duration: 1.5 hours

Number of Questions: 36

PRM Part IV: Case Studies and By-Laws

Weighting

Case Studies 80%

By-Laws and Code of Conduct 20%

Exam

Duration: 1 hour

Number of Questions: 24

Exam Exemptions

The PRM program currently

recognizes the following other

professional designations and gives

partial credit towards completion of

the requirements for the PRM

certification.

Faculty

The PRM Faculty comprises top industry trainers and Handbook authors

Carol Alexander John BoardJacques Pezier

Moorad Choudhry

Azmi Özünlü

Andrew SpielerEhsan NikbakhtSteve Block

7city Scholarship

Three scholarship places are available for candidates

wishing to enroll in the PRM program.

For further details, please email:

prmscholarship@7city.com

Choose Between Three Modes of Learning

1. Evening Course

2. Intensive Bootcamps

3. Distance Learning: either

a) Live London lectures, or

b) DVD recorded lectures

Choose Between Three Modes of Learning

1. Evening Course

2. Intensive Bootcamps

3. Distance Learning: either

a) Live London lectures, or

b) DVD recorded lectures

London Course (and Live Distance Learning)

Lectures: at 7city premises

Live and recorded webcasts

Learning Management System:

• Diagnostic tests

• Worked examples

• Other supporting materials

London Lectures

Live and recorded webcasts

Lecture Notes

PRM Portal

Diagnostics tests: 10 questions on each lecture

PRM Portal

Excel Files

PRM Portal

Captivate Screen-grabber: Excel demonstrations

PRM Portal

Worked Examples

PRM Portal

Other

Supporting

Materials

Enrolling by Distance Learning?

a) Live distance learning offers:

• Lecture participation via web and teleconference

• Live interaction with instructor and full access to recorded sessions

• E-copy of PRM handbook

• Exactly the same worked examples and diagnostics tests and other support materials as New York based course hosted on

PRM Portal.

b) ILE distance learning offers:

• Flexibility to study according to your own needs and at your own pace

• Four elements of learning: Lectures, demonstrations, worked examples and diagnostics tests

Distance Learning Interactive Learning Environment (ILE)

Studio recorded lectures on DVD

PRM Portal hosting:

• Captivate demonstrations

• Worked examples

• Diagnostics tests

Schedule for New York Course

Schedule for New York Course

Schedule for New York Course

Bootcamps

Intensive one-week full-time course Covers all four exams Fee includes handbook and lectures

Next Steps…

Read the comprehensive brochure

Visit the website: www.7city.com/prm

View a sample lecture

Talk to members of the faculty

Contact 7city:

• Email: usclientservices@7city.com or Geoff Brown at G.Brown@7city.com